XYZ Co.'s 20X2 ratio of allowance for credit losses to gross receivables has declined from the ratio at the end of 20X1. To help evaluate whether the reduction in XYZ's ratio is reasonable, an analyst should do all of the followingexcept:

Multiple Choice

• look for additional discussion in XYZ's annual report.
• listen to the company's earnings briefing for the analysts.
• contact the SEC for more information.
• compare the ratio to other firms in XYZ's industry.